What does a consignment agreement allow an auction house to do?

A consignment agreement is a crucial document in the auction process that formalizes the relationship between the auction house and the seller. It specifically allows the auction house to sell items on behalf of a seller, meaning that the auction house acts as an intermediary. The seller retains ownership of the items until they are sold at auction, and the auction house is empowered to market and sell those items, often for a predetermined commission. This arrangement benefits both parties: the seller gets access to a wider audience for their items, while the auction house earns a fee from the sale.

The other choices imply actions that either bypass the seller's rights or do not accurately reflect the nature of a consignment agreement. For instance, selling items without the owner's permission directly contradicts the fundamental principle of a consignment, where the owner's consent is essential. Setting prices that solely benefit the auctioneer undermines the established agreement between the seller and auction house and would not typically occur without the seller’s input. Similarly, determining the auction date, while an important logistical aspect, is not the primary purpose of a consignment agreement, which focuses on the sale of items on behalf of the seller.